India’s leading EV-tech and last-mile logistics platform, Zypp Electric, is entering into a critical growth phase as it targets INR 600 crore in revenue by FY26 and prepares for an IPO in FY27. The company reports a sharp rise in profitability, diversification of revenue streams, and accelerated nationwide expansion—key indicators that the company is positioning itself for public markets with a strengthened balance sheet and operational moat.

Zypp Electric Financial Performance

Zypp Electric reported an INR 448 crore in revenue in FY25, a 48% YoY increase from INR 302.6 crore in FY24. Zypp Electric also achieved EBITDA breakeven in July 2025, with margins improving from (19.3)% in FY24 to 2% by September 2025.

For an EV-as-a-service company operating in a capex-heavy ecosystem, Zypp’s consistent improvement in operational efficiency—bolstered by a 50:50 hybrid model of leased and bank-financed vehicles—has been critical in achieving nearly 90% fleet uptime. This structural improvement reduces cash burn and supports scale without proportional cost escalation.

Fleet Scaling and Market Expansion

The company has expanded from ~6,000 vehicles in 2022 to over 20,000 electric two-wheelers today. Zypp Electric is eyeing a target of deploying 1,00,000+ vehicles by 2030 across 25 cities. This will place the company among the largest EV logistics operators in the country.

While Zypp’s dominance in Delhi NCR, Bengaluru, and Mumbai continues to anchor its earnings, the company is betting big on non-metro adoption. Its Tier-II expansion begins with Jaipur in November 2025, with a pipeline to scale into 25 cities within two years.

Zypp is also diversifying its vehicle portfolio: 1,000+ electric three-wheelers are scheduled for rollout by March 2026, strengthening its share of the higher-capacity, high-volume segment of last-mile delivery.

Revenue Diversification: New Monetisation Engines Strengthen Business Model

Investors tracking Zypp IPO readiness will note that the company is no longer dependent solely on EV rentals and logistics commissions.

It now operates a multi-layered monetisation structure:

1. EV Rentals & Logistics Commissions (Core Engine)

Zypp’s primary drivers remain its daily rental plans and delivery commissions from major partners such as Zepto, Blinkit, and Zomato. This dual-revenue model has consistently scaled alongside the growth of India’s hyperlocal delivery market.

2. Fleet Advertising (High-Margin Add-On Business)

Zypp recently launched an advertising vertical that monetises both its fleet and riders’ helmets as mobile branding surfaces.

Brands including Paytm, Swiggy, Rapido, and Leverage Edu have already come onboard. Since its launch in July 2025, this segment has generated INR 50 lakh, signalling strong early traction in a business line with minimal incremental cost.

3. FleetEase.ai (SaaS-Based Fleet Management Platform)

Zypp has commercialised its internal fleet intelligence platform FleetEase.ai, offering it to external fleet operators through a subscription model priced at INR 149–499 per vehicle per month.

The SaaS division is projected to contribute INR 60 lakh in FY26, and while currently modest, it introduces a recurring, margin-accretive revenue stream with long-term upside as India’s e-mobility ecosystem matures.

Strategic Positioning: A Full-Stack EV Logistics Ecosystem

Founder and CEO Akash Gupta describes Zypp’s next phase as one of “super scale, profitability, and smart diversification.” The company’s strategy centres on creating a full-stack EV technology ecosystem that serves delivery partners, enterprise clients, and logistics networks with an integrated suite of mobility, technology, and advertising solutions.

The company’s continued investment in battery-swapping infrastructure, software intelligence, and multi-city expansion positions it well for both scale and defensibility—two parameters public market investors heavily scrutinise.

Zypp Electric IPO Outlook

With EBITDA-positive operations, strong revenue visibility, and diversified income streams, Zypp Electric is entering FY26 with a clearer financial narrative than many early-stage EV platforms.

The company’s stated plan to explore an IPO in FY27 aligns with its revenue target of INR 600 crore, expanded fleet deployment, and entry into Tier-II markets—factors that could enable Zypp to demonstrate consistent, predictable earnings by the time it files for public listing.

Outlook

Zypp Electric’s strong financial momentum, new monetisation drivers, and aggressive national expansion signal a company moving firmly toward market leadership in EV-powered logistics. As India’s delivery economy accelerates and large enterprises push toward sustainable last-mile solutions, Zypp is positioning itself as one of the most comprehensive and operationally mature EV logistics companies in the country.

For investors watching India’s EV and logistics sectors, Zypp’s trajectory over the next 18 months will be critical. With the right execution and capital discipline, it could emerge as one of the first EV-as-a-service platforms to successfully transition from a high-growth startup to a publicly listed mobility leader.

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